45 CFR 235.66 - Sources of State funds.
(a) Public funds. Public funds may be considered as the State's share in claiming Federal reimbursement where the funds:
(1) Are appropriated directly to the State or local agency, or transferred from another public agency (including Indian tribes) to the State or local agency and under its administrative control, or certified by the contributing public agency as representing expenditures eligible for FFP under §§ 235.60-235.66;
(2) Are not used to match other Federal funds; and
(3) Are not federal funds, or are Federal funds authorized by Federal law to be used to match other Federal funds.
(b) Private funds. Funds donated from private sources may be considered as the State's share in claiming Federal reimbursement only where the funds are:
(1) Transferred to the State or local agency and under its administrative control;
(2) Donated without any restriction which would require their use for the training of a particular individual or at particular facilities or institutions; and
(3) Do not revert to the donor's facility or use.